This morning brought another milestone in our neighborhood transformation efforts in Avondale, when the Ohios Housing Finance Agency announced that TCB’s Phase I proposal had been awarded a major piece of its development funding, allowing that project to move forward toward a 2014 construction start.
TCB’s official press release on the announcement:
THE COMMUNITY BUILDERS, INC. AWARDED $1M IN TAX CREDITS FOR CINCINNATI HOUSING DEVELOPMENT
Credits to support $14.7M first phase of Avondale neighborhood revitalization
CINCINNATI, June 12, 2013 — The Ohio Housing Finance Agency today announced a 2013 Housing Tax Credit reservation for The Community Builders, Inc. (TCB), a leading nonprofit developer of mixed-income housing. The $1 million reservation will generate $8.8 million of equity investment to fund the organization’s revitalization of two distressed multifamily housing properties in the city’s Avondale neighborhood.
“We are excited about this newest investment in our work to revitalize Avondale,” said Jeff Beam, senior project manager. “This funds the rehabilitation of two historic multifamily buildings that over 80 low-income families now call home and allows us to move forward with the initial wave of development that will create or rehabilitate 200 apartments.”
The tax credit commitment will leverage a total of $14.7 million in development for the project’s first phase, which includes 81 units in two buildings on Avondale’s Reading Road. This phase is part of the housing development spurred by a $29.5 million U.S. Housing and Urban Development (H.U.D.) Choice Neighborhoods Implementation grant awarded to TCB in 2012. The remainder of the funding for this phase will come from the Choice grant, a TCB Neighborhood Stabilization Program 2 loan, federal historic tax credits and traditional debt. Construction is expected to start in mid-2014.
The tax credit award follows TCB’s recent acquisition of 19 multifamily properties across Cincinnati, including the five Reading Road buildings in Avondale that are the core of the Choice grant. Since the acquisition, TCB has attracted nearly $50 million in development capital commitments to the Avondale neighborhood.
“TCB is deeply committed to Cincinnati. We are investing our talent and resources to help to create quality housing and thriving neighborhoods though our long-time work in the West End and our recent expansion to Avondale and other targeted neighborhoods in the City,” continued Beam.
TCB plans to pursue additional tax credit funding this summer for a parallel phase of development that will include another 119 units and seven buildings in the Avondale neighborhood. Construction on that phase is anticipated to start in the first quarter of 2014.
The company also owns and manages City West, an award-winning mixed-income development in Cincinnati’s West End, with 686 units and over 1,400 residents. In 2012, City West received $6 million from new investors and lenders to reinvest in this development.
Updates on TCB’s work in Cincinnati are posted on the Strengthening Cincinnati Communities Together blog.